If the General Level of Prices Is Lower Than Business

question 99

Multiple Choice

If the general level of prices is lower than business decision makers anticipated when they entered into long-term contracts for raw materials and other resources, which of the following is most likely to occur?

• A) an economic boom
• B) highly attractive profit margins
• C) output less than the economy's long-run potential
• D) a sharp increase in imports

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Definitions:

Foreign Investments

Investments made by individuals, companies, or governments in business interests located in another country, outside of the investor's own country.

Globalization

The process by which businesses, cultural concepts, or technologies spread worldwide, leading to increased interconnectedness and interdependence among the world's economies, cultures, and populations.

McDonaldization

A concept that describes the process by which principles of the fast-food industry, like efficiency, predictability, and control, dominate other sectors of society.

Global Poverty

The condition where individuals or communities lack the financial resources to meet basic living standards around the world.